Deeds of Assignment of a Debt – Your Top Questions Answered

Posted by David Cammack on 7th February 2020

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Do you want to know more about what a deed of assignment of a debt is, if you need one, or what to include in it, our blog article has all the answers. Today we are answering the top questions from the Internet about deeds of assignment of a debt.

1. Can a debt be assigned?

Yes. Banks regularly buy and sell debts. If you are a creditor, then you can do so too. But you need to do so in writing. A deed of assignment of a debt is the document to use for this. You would need to assign the whole of a debt, as you cannot assign only part of it.

2. What is an assignment of a loan?

This means the same thing as an assignment of a debt. It is always the right to receive repayment of the debt or loan that is being assigned.

3. What is a deed of assignment of a debt?

A deed of assignment of a debt is a legal document that transfers the ownership of the debt to another person. By ‘ownership’ we mean the right to receive repayment of that debt from the same original debtor or borrower.

4. What does assignment of debt mean?

The assignment of a debt will mean that the original debtor or borrower now owes the debt to a different creditor. So the debtor will now need to repay that debt to a new person, because the debt has been transferred.

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5. What is a notice of assignment of a debt?

You need to give the debtor notice of the transfer of the debt. Otherwise how will they know to repay the new owner of the debt? Ideally, the deed of assignment of debt will mention this and include a form for the notice. (Legalo’s template does.) Wikipedia explains why such notice is necessary here: https://en.wikipedia.org/wiki/Rule_in_Dearle_v_Hall#Criticisms.

6. How to draft a deed of assignment of a debt

If you require a deed of assignment of a debt, then the quickest way to get one is with a template from Legalo. Find our great template here: just click on this link.

Our assignment template is just £24.95. In just a few minutes yours can be ready. What’s more, Legalo’s templates each come with a guide to make it clear how to complete it. We also provide a free helpline just in case you need any extra assistance to use it. So it could not be easier.

So if you need one, you know where to find it.